T or F
Firms tend to be less profitable when there is higher real growth in the underlying market than when there is lower real growth
False.
Firms tens to be more profitable when there is more growth in the underlying market because increase in the underlying market increase client base for the firms and thus with increase in overall market clients will have more funds to buy good/services. With that extra profits firms can have more revenues which they can invest to buy more assets/ pay off liabilities and thus reach economies of scale.
Also due to market forces of demand/supply the demand will increase making firms more profitable.
T or F Firms tend to be less profitable when there is higher real growth in...
Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with higher expected growth rates. Multiple Choice a)equal to b)There is not necessarily any linkage between risk and P/E ratios. c)lower than d)higher than
Higher labor adjustment costs increase the effect of a real shock on real GDP growth.? t/f
If firms in the economy find that there are less profitable business opportunities, then in the bond market, the equilibrium interest rate will ____ and the equilibrium price will ____ . rise; fall rise; rise fall; rise fall; fall
Firms tend to use less debt when A. Operating leverage is high O B. Business risk is high C. They have many intangible assets O D. All of the above
We can anticipate that any long-term growth in retail revenue will tend to occur _________ growth in the overall economy, and the Internet retail revenue is expected to grow _________ the overall economy. a. more rapidly than; less rapidly than b. less rapidly than; at the same rate as c. at a similar rate as; at a higher rate than d. more rapidly than; at a similar rate as
The median growth rate of per capita real GOP in New Brunswick is higher than in Aberta househoid income in New Brunswick is approximitely $65.910 per yee year, while the median household income in Alberta is e about $94,460. However, suppose the ss 2%) perspective of trying to miaximize your income per capita, which state wil have higher increases in income over the next few yeers? OAlberta, because incomes are rising slower New Brunswick, because the lower income means the...
2. Why do ionic substances with higher lattice energies tend to be less soluble in water than substances with lower lattice energies? 3. Which would you expect to have the larger hydration energy, SO or CIOA? Explain. 4. Ethyl alcohol, CH CH2OH, is miscible with water at 20°C, but pentyl alcohol, CH3CH2CH2CH2CH2OH, is soluble in water only to the extent of 2.7 g/100 ml. Explain.
Aggregate Demand AS IT Price Level LAD2 i I AD 10 Real GDP 1. Circle the correct answer: Based on the graph, the (flatter, steeper) aggregate supply curve results in a higher inflation and thus a (smaller, larger) multiplier effect. 2. Is this question true or false? If the aggregate supply curve is vertical, the multiplier will approach infinity. C False True What do you notice about the relationship between the real wage and the price level? Check all that...
Because firms believe that lower wages will lead to reduced worker morale and lower productivity when a negative shock hits, a. firms tend to increase employment b. firms tend to lay-off workers in addition to lowering wages c. firms tend increase employment in addition to lowering wages d. firms tend to lay-off workers rather than lower wages
In the real world, the long-run supply curve may slope upward because: newer firms with higher costs will be attracted to enter a market with higher prices Oprice and MC move together. O MC increases as output increases. when the price rises, costs also rise.